Concept explainers
To calculate: The average difference between the company’s income and expenses of each month.
Answer to Problem 35PPS
The average difference between the company’s income and expenses of each month is
Explanation of Solution
Given information:
Total income of a small clothing company was
Formula used:
The average difference between the company’s income and expenses of each month is denoted by
Calculation:
Consider the provided information that the total income of a small clothing company was
Recall that the average difference between the company’s income and expenses of each month is denoted by
Substitute I as
The negative average difference between the company’s income and expenses of each month denotes that the clothing company was going in a loss and was losing money every month by
Thus, the average difference between the company’s income and expenses of each month is
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